China Gives Tax Cut to Small Businesses

April 24, 2014 Taxation in China

Small Businesses in ChinaBEIJING – Small businesses in China are about to see their recieve a new temporary tax break, halving their tax obligation.

Over the weekend the State Administration of Taxation of China issued a new statement saying that small and micro businesses in the country will now automatically enjoy a significant reduction in their tax obligations.

From the start of this year until the end of 2016, all businesses in China with an annual taxable income of less than RNB 100 000 will see their income tax obligation slashed in half to a rate of 10 percent.

In its new statement the State Administration of Taxation emphasized that the tax break will be granted automatically to all qualifying businesses upon meeting their annual filing obligations, and any businesses which have already paid income taxes so far this year at the original 20 percent rate will be eligible for a refund on the difference.

Small and micro businesses play a vital economic role in China, making up 76.57 percent of all businesses in the country, and create more than 70 percent of all jobs in China.

Photo by: watchsmart